Mutual funds continue to be one of the most preferred investment options for long-term wealth creation in India. With professional management and diversification, they offer investors exposure to various market segments without the need to pick individual stocks. Over the last decade, a few mutual funds have stood out by delivering exceptional returns between 495% and 630%, turning every ₹1 lakh investment into ₹6 to ₹7.3 lakhs. In this article, we explore the top 10 mutual funds outperformed in the last 10 years along with each fund wise details for investors to make decision whether to invest or not.
Earlier we covered 12 Mutual Funds Outperformed in Last 2 Years with 66% to 104% Returns. Now, let’s look at the 10-year outperformers.
How We Filtered These Mutual Funds
For this analysis, we considered all equity mutual funds, including diversified, thematic, and sectoral categories. We reviewed their 10-year performance data and ranked them purely based on highest absolute returns delivered over the period.
From this list, we picked the top 10 funds that generated the best 10-year CAGR ranging between 19.5% and 22%, which translates to 495% to 630% absolute returns.
This simple approach helps investors clearly see which mutual funds have delivered superior long-term wealth creation over the past decade.
List of 10 Mutual Funds Outperformed in Last 10 Years
| Rank | Mutual Fund Scheme | 10-Year CAGR (%) | 10-Year Absolute Returns (%) | ₹1 Lakh would have turned to (approx.) |
|---|---|---|---|---|
| 1 | Quant ELSS Tax Saver Fund | 22.0 | 631% | ₹7.31 Lakh |
| 2 | Nippon India Small Cap Fund | 21.8 | 616% | ₹7.16 Lakh |
| 3 | Quant Small Cap Fund | 20.3 | 538% | ₹6.38 Lakh |
| 4 | Quant Infrastructure Fund | 20.1 | 528% | ₹6.28 Lakh |
| 5 | Invesco India Mid Cap Fund | 20.1 | 528% | ₹6.28 Lakh |
| 6 | DSP Natural Resources and New Energy Fund | 19.9 | 518% | ₹6.18 Lakh |
| 7 | Quant Flexi Cap Fund | 19.9 | 518% | ₹6.18 Lakh |
| 8 | Axis Small Cap Fund | 19.8 | 513% | ₹6.13 Lakh |
| 9 | HDFC Small Cap Fund | 19.8 | 513% | ₹6.13 Lakh |
| 10 | Kotak Midcap Fund | 19.5 | 495% | ₹5.95 Lakh |
Data as on 12-Oct-2025 from Moneycontrol and Valueresearch.
Deep Dive into 10 Mutual Funds That Outperformed in Last 10 Years
#1 – Quant ELSS Tax Saver Fund
Fund Objective:
Invests primarily in diversified equity portfolios with a focus on tax-saving benefits under Section 80C.
Performance Highlights:
- 3-Year CAGR: 16.5%
- 5-Year CAGR: 27.9%
- 10-Year CAGR: 22.0%
- Absolute Return (10Y): 631%
- ₹1 Lakh grew to ₹7.31 Lakh
Who Can Invest:
- Investors looking for tax-saving and high-growth potential
- Long-term investors with moderate to high risk appetite
Risk Factors:
- High volatility due to aggressive stock selection
- Exposure to mid and small-cap stocks increases downside risk
This fund is even among the 10 Mutual Funds that generated highest SIP returns in the last 10 years.
#2 – Nippon India Small Cap Fund
Fund Objective:
Focuses on small-cap companies with strong earnings growth potential and scalable business models.
Performance Highlights:
- 3-Year CAGR: 23.3%
- 5-Year CAGR: 33.5%
- 10-Year CAGR: 21.8%
- Absolute Return (10Y): 616%
- ₹1 Lakh grew to ₹7.16 Lakh
Who Can Invest:
- Long-term investors seeking higher returns
- Those with high risk tolerance for small-cap volatility
Risk Factors:
- High short-term volatility
- Liquidity challenges in small-cap segment
#3 – Quant Small Cap Fund
Fund Objective:
Targets small-cap companies across sectors with high growth potential.
Performance Highlights:
- 3-Year CAGR: 25.2%
- 5-Year CAGR: 35.2%
- 10-Year CAGR: 20.3%
- Absolute Return (10Y): 538%
- ₹1 Lakh grew to ₹6.38 Lakh
Who Can Invest:
- Investors aiming for aggressive long-term growth
- Those comfortable with high volatility
Risk Factors:
- Small-cap risk and valuation fluctuations
- Economic slowdown may affect returns
Do you know that this fund is among 10 Mutual Funds That Turned ₹ 1 Lakh Into Over ₹ 10 Lakhs in 15 Years.
#4 – Quant Infrastructure Fund
Fund Objective:
Invests in infrastructure-related sectors such as construction, energy, transport, and industrials.
Performance Highlights:
- 3-Year CAGR: 20.5%
- 5-Year CAGR: 34.3%
- 10-Year CAGR: 20.1%
- Absolute Return (10Y): 528%
- ₹1 Lakh grew to ₹6.28 Lakh
Who Can Invest:
- Investors bullish on India’s infrastructure growth
- Long-term investors comfortable with sectoral concentration
Risk Factors:
- Sector-specific risks
- Delays in government projects or policy changes
#5 – Invesco India Mid Cap Fund
Fund Objective:
Focuses on mid-cap companies with strong balance sheets and sustainable earnings.
Performance Highlights:
- 3-Year CAGR: 29.1%
- 5-Year CAGR: 29.6%
- 10-Year CAGR: 20.1%
- Absolute Return (10Y): 528%
- ₹1 Lakh grew to ₹6.28 Lakh
Who Can Invest:
- Medium to long-term investors
- Those looking for higher growth potential than large caps
Risk Factors:
- Volatility in mid-cap segment
- Liquidity constraints during market corrections
We reviewed this fund as part of 5 Best Midcap Mutual Funds to Invest in 2025 (Based on Rolling Returns).
#6 – DSP Natural Resources and New Energy Fund
Fund Objective:
Invests in companies in the natural resources, mining, and new energy sectors.
Performance Highlights:
- 3-Year CAGR: 24.0%
- 5-Year CAGR: 28.8%
- 10-Year CAGR: 19.9%
- Absolute Return (10Y): 518%
- ₹1 Lakh grew to ₹6.18 Lakh
Who Can Invest:
- Investors seeking exposure to commodities and energy transition themes
- Those with high risk tolerance
Risk Factors:
- Commodity price volatility
- Global macroeconomic risks
#7 – Quant Flexi Cap Fund
Fund Objective:
Adopts a flexible investment approach across market capitalizations to capture growth opportunities.
Performance Highlights:
- 3-Year CAGR: 18.3%
- 5-Year CAGR: 27.2%
- 10-Year CAGR: 19.9%
- Absolute Return (10Y): 518%
- ₹1 Lakh grew to ₹6.18 Lakh
Who Can Invest:
- Investors looking for a diversified all-cap exposure
- Those preferring dynamic fund management
Risk Factors:
- Market-wide volatility
- Frequent portfolio churn risks
#8 – Axis Small Cap Fund
Fund Objective:
Focuses on small-cap companies with strong fundamentals and potential for long-term growth.
Performance Highlights:
- 3-Year CAGR: 19.9%
- 5-Year CAGR: 27.5%
- 10-Year CAGR: 19.8%
- Absolute Return (10Y): 513%
- ₹1 Lakh grew to ₹6.13 Lakh
Who Can Invest:
- Long-term investors seeking higher alpha
- Those comfortable with small-cap volatility
Risk Factors:
- High price volatility
- Lower liquidity in small-cap stocks
We also reviewed this fund earlier at 6 Mutual Funds That Turned ₹ 1 Lakh Into Over ₹ 6 Lakhs in 10 Years.
#9 – HDFC Small Cap Fund
Fund Objective:
Invests predominantly in small-cap companies with growth potential.
Performance Highlights:
- 3-Year CAGR: 23.7%
- 5-Year CAGR: 31.1%
- 10-Year CAGR: 19.8%
- Absolute Return (10Y): 513%
- ₹1 Lakh grew to ₹6.13 Lakh
Who Can Invest:
- Investors with a 7-10 year horizon
- Those aiming for aggressive long-term wealth creation
Risk Factors:
- High volatility in smaller companies
- Market correction impact on valuations
#10 – Kotak Midcap Fund
Fund Objective:
Focuses on quality mid-cap stocks with consistent earnings growth.
Performance Highlights:
- 3-Year CAGR: 23.8%
- 5-Year CAGR: 29.0%
- 10-Year CAGR: 19.5%
- Absolute Return (10Y): 495%
- ₹1 Lakh grew to ₹5.95 Lakh
Who Can Invest:
- Investors seeking balanced risk-return profile
- Suitable for medium to long-term wealth creation
Risk Factors:
- Mid-cap market corrections
- Concentration risk in few sectors
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Conclusion
The last decade has rewarded investors who stayed invested in high-quality equity mutual funds. These 10 mutual funds delivered phenomenal returns ranging from 495% to 630%, demonstrating the power of long-term compounding. However, investors should remember that past performance does not guarantee future returns. Always consider your risk appetite, investment horizon, and financial goals before investing.
If you are looking to invest in mutual funds for 10 years or more, these outperformers can be part of your watchlist for further evaluation.
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